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~ <br />! , ' r <br />ii. Attaining Basic Goal: <br />(1) County: existence of Fixed Price or refined GMP Construction <br />Contract will demonstrate that County financing, together with <br />contributions of other parties, will be su~cient to pay County <br />share <br />(2) Transit: existence of FTA grant agreement and FTA <br />reimbursement funding mechanism will demonstrate that Transit <br />financing, together with contributions of other parties, will be <br />sufficient to pay Transit share <br />(3) Private Owner: to meet requirements, the Private Owner must <br />provide: <br />(a) Letter of Credit: an irrevocable bank letter of credit in an <br />amount equal to the maximum amount of the Private <br />Owner's share of Project costs, with the letter of credit <br />issued in favor of the County and the Transit District~ to be <br />drawn upon to pay Project costs <br />(i) Advantage: shifts entire credit risk to the bank <br />issuing the letter of credit, and thus avoids need to <br />disclose personal financial statement of investors in <br />Private Owner <br />(b) Loan Agreement and Equity Commitment: executed <br />construction loan agreement and equity commitments in an <br />amount equal to the maximum amount of the Private <br />Owner's share of Project costs, signed and providing for <br />lender and equity investors to advance funds to County and <br />Transit District as and when requested to pay Project Costs <br />(i) Disadvantage: because the equity will be needed to <br />fully fund Project costs, it will be necessary for the <br />equity investors to provide audited financial <br />statements to the County that will be required to be <br />published in the Official Statement <br />1) Note: this legal requirement of public <br />disclosure of personal financial statements is <br />likely to unacceptable to equity investors <br />~ <br />~ <br />